TL;DR
- The gist: X has terminated the European Commission’s advertising account, accutilizing it of exploiting platform tools to manipulate post reach.
- Key details: The ban follows a €120 million fine issued under the Digital Services Act for deceptive “Blue Check” verification practices.
- Why it matters: This escalation has triggered diplomatic fallout, with US officials threatening 50% tariffs on EU exports in retaliation.
- Context: X claims the Commission utilized a “dormant account” to post deceptive video-like links, while the EU defconcludes its transparency ruling.
Escalating a regulatory dispute into open hostility, X has terminated the European Commission’s advertising account just 48 hours after the bloc issued a €120 million fine against the platform.
Nikita Bier, X’s head of product, announced the ban on Sunday, accutilizing regulators of exploiting a dormant ad account to manipulate post reach. He claimed the Commission utilized the platform’s Ad Composer tool to create deceptive links that mimicked video content.
The relocate marks a sharp retaliation against the Digital Services Act (DSA), the EU’s landmark online safety rulebook, transforming a compliance issue into a diplomatic standoff.
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The Retaliation: ‘Exploits’ and Irony
X terminated the European Commission’s ad account on Sunday, citing a violation of platform rules regarding deceptive content. Nikita Bier, X’s head of product, publicly announced the ban, framing it as an enforcement action against a rule-breaking utilizer rather than a political reprisal.
The specific accusation centers on the Commission’s utilize of a “dormant ad account” to access the Ad Composer tool. Bier claimed the regulator utilized this tool to post links that appeared as video players, a tactic he characterized as a deliberate manipulation of utilizer trust:
“You logged into your dormant ad account to take advantage of an exploit in our Ad Composer — to post a link that deceives utilizers into considering it’s a video and to artificially increase its reach.”
This technique, often called “card customization,” allows advertisers to modify the preview image and title of a link, sometimes mimicking a playable video to drive clicks. While historically a common practice among advertisers seeking higher engagement, X now classifies it as a deceptive exploit when utilized to mislead utilizers about content format.
Highlighting the perceived hypocrisy of a regulator breaking platform rules while enforcing transparency laws, Bier noted that while X supports equal voice, “it seems you believe that the rules should not apply to your account.”
The termination notice was delivered bluntly via social media, with Bier sharing the termination notice alongside the message: “Your ad account has been terminated.”
The Trigger: A Historic Fine
The ban comes less than 48 hours after the European Commission levied the €120 million fine against X for violating the Digital Services Act (DSA). Regulators specifically tarobtained X’s “Blue Check” verification system, labeling it a “dark pattern” that misleads utilizers about account authenticity.
The core of the Commission’s non-compliance decision rests on the disconnect between utilizer perception and the platform’s actual mechanics. Regulators determined that X’s “Blue Check” constitutes a prohibited “dark pattern” under the Digital Services Act becautilize it exploits the historical association of the checkmark with authenticity.
By allowing any utilizer to purchase “verified” status without requiring meaningful identity documentation, the platform effectively sells a trust signal as a commodity. The Commission concluded that this practice inherently deceives utilizers, who are led to believe they are engaging with vetted entities when, in reality, the badge signifies nothing more than a paid subscription.
Beyond the checkmarks, the fine also penalized X for failing to maintain a transparent advertising library and blocking researcher access to public data. X has been given a strict timeline to comply, with 60 days to propose remedies for the verification system and 90 days to repair ad transparency issues.
Henna Virkkunen, the EU’s tech czar, dismissed claims of censorship, emphasizing that the decision is strictly “about the transparency of X.”
Geopolitical Fallout: Trade War Threats
The dispute has rapidly escalated beyond a regulatory compliance issue into a full-blown transatlantic diplomatic rift. US officials have framed the fine not as consumer protection, but as an attack on American free speech and economic interests.
US Vice President JD Vance criticized the EU’s approach, arguing Brussels should support free speech rather than “attacking American companies over garbage.”
Tensions reached a boiling point with specific economic threats from the incoming administration. US Commerce Secretary Howard Lutnick reportedly threatened to maintain 50% tariffs on European steel and aluminum exports unless the EU loosens its digital regulations.
FCC Chairman Brconcludean Carr added to the rhetoric, accutilizing Europe of “taxing Americans to subsidise a continent held back by Europe’s own suffocating regulations.”
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